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What Do You Want The Arbitration Award to Say?

By Charles F. Forer
May 02, 2014

After a bitterly contested four-day arbitration hearing in which attorney Bob represented the franchisor, the sole arbitrator awarded the claimant everything it had sought in this fight between franchisor and franchisee. It was a devastating loss for Bob and his client.

However, there was good news as far as Bob was concerned. Why? The arbitrator did not explain the reasoning for her award. It was just one line: “I find in favor of claimant and against respondent, in the amount of $1.2 million.”

“That can't be right,” Bob told the franchisor's president. “The parties and their lawyers are entitled to understand the basis for the award. How do we know if the arbitrator got it right? How do we know if the arbitrator analyzed each issue we presented?”

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